ALL options will remain open to address relations between dairy farmers and milk processors as peak representative body the Australian Dairy Industry Council moves ahead with its 12- month review of the industry’s Code of Practice.

The Code was introduced in July last year and the industry group committed at the time to undertake a review after a year to assess its effectiveness.

“ADIC is conducting a scheduled review of the Voluntary Code of Practice, which was agreed to by all state dairy farmer organisations,” ADIC Chairman Terry Richardson said.

“The review will determine how effective the Voluntary Code has been and whether it is necessary to adopt a different approach. This could be a prescribed voluntary code, mandatory code or another mechanism altogether. Nothing is off the table.”

As part of the process, the ADIC will analyse separate reports handed down by the Australian Competition and Consumer Commission (ACCC) and the federal Senate’s Economics Reference Committee.

The final ADIC report will include options to improve contract processes, increase price transparency, build industry capability and bolster the Code of Practice.

Mr Richardson said the review would involve stakeholders across the dairy supply chain to ensure the best outcome for farmers.

“The Code of Practice is a vital part of restoring relationships across industry,” he said.

“We want to ensure we get the Code right and the review process is the best way to achieve that outcome.

“At this stage it would be wrong to pre-empt the outcome of the review.” It is expected the review will be complete by the end of June.

Advocacy body Australian Dairy Farmers will then hold a series of forums aimed at educating farmers on how the recommendations will be implemented.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S dairy industry is urging the federal Government to fight for a fair outcome in new free trade negotiations with the European Union (EU).

The Australian Dairy Industry Council (ADIC) said the Government needed to push back against excessive restrictions that could damage the value of Australian dairy exports to EU countries, which already declined by an alarming 94.3 per cent over the 10-year period to 2016, from US$45 million to just US$2.3 million.

“It is vital that the free trade agreement has benefits for both sides, considering the ease of access European dairy manufacturers have to the Australian market,” ADIC Chair Terry Richardson said.

Of particular concern are efforts to restrict the use of common cheese names, often referred to
as geographic indications of origin (GIs), which could put Australian dairy producers at a disadvantage to their European counterparts.

“We are deeply concerned that GIs will mean local manufacturers and exporters will no longer be able to use common names like Parmesan or feta because of EU GI regulations,” Mr Richardson said.

Mr Richardson said the negotiations were a unique opportunity to remove the barriers that are currently stifling dairy trade between Australia and the EU.

“These trade negotiations should allow both Australia and the EU to capitalise on an improved commercial relationship,” he said.

“But we need to ensure this deal frees up the trade relationship rather than creates technical barriers such as GIs.”

The EU’s Trade Commissioner will visit Canberra next month to formally kick off negotiations.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

THE Australian Dairy Industry Council has acknowledged the release today of the final report in the Australian Competition and Consumer Commission’s inquiry into the dairy sector.

ADIC Chair Terry Richardson said the industry can rest assured that a review was currently underway of the industry’s voluntary Code of Practice.

“ADIC will take a key role in the review consultation process, which will incorporate the ACCC’s analysis,” Mr Richardson said.

“The benefit of the Code has always been that we can bring all of industry together in the one room to have an agreed set of parameters and conditions for processor contracts.

“The review was flagged at the time the Code was introduced last year, and the ADIC is committed to ensuring the review is conducted thoroughly and incorporates ACCC recommendations.”

Mr Richardson said the ADIC would also support the introduction of an independent umpire to mediate contract disputes between farmers and processors.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) welcomes the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP.

The CPTPP agreement will deliver an improvement in Australian dairy market access arrangements into Japan, Australia’s largest cheese export market.

Australia already has a trade agreement in place with Japan – JAEPA (the Japan Australia Economic Partnership Agreement). However, the market access provided under CPTPP delivers improvements in some areas that were excluded under JAEPA.

There will also be some improvements in market access into other markets including Mexico, Peru and Canada.

Importantly Australian dairy will maintain its competitive position into the CPTPP markets and will continue to be a key supplier into CPTPP member countries as well as an important player in dairy supply chains across the region.

The Australian dairy industry congratulates The Hon. Minister for Trade, Tourism and Investment Steven Ciobo, the Australian negotiators and all the CPTPP partner countries for their contribution to this positive result. The CPTPP has been resurrected from the former TPP agreement which appeared to reach a dead end when the United States announced that it would withdraw from the agreement in early 2017.

The CPTPP is a regional trade agreement between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Japan, Vietnam, Mexico and Canada.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 255

E: dinall@australiandairyfarmers.com.au

Basin States must adopt a more flexible approach to water recovery for the sake of all communities in the Murray Darling Basin, the Australian Dairy Industry Council (ADIC) said today.

Daryl Hoey, chair of the ADIC Basin Water Taskforce, urged the States to come back to the table to consider all options for achieving the Plan, including the 450 GL ‘upwater’.

“The Basin Plan is flexible – water should be able to come from a range of projects and alternative arrangements agreed by the States. It does not have to be recovered solely from irrigators through on- farm projects. The key is that the ‘upwater’ is found without negative social or economic impacts to communities along the river,” Mr Hoey said.

Mr Hoey also warned that threats to derail the 605 GL in environmental offsets could lead to more buybacks.

“All States agreed to the offsets as a mechanism for achieving the goals of the plan when projects were submitted to the MDBA back in June,” he said. “No State should be walking away from that agreed process now.”

“The offsets will deliver better environmental outcomes than merely sending more water down the river and hoping for the best.

“If the offsets are derailed, the Commonwealth may revert to buybacks to meet even the Basin Plan’s 2750 GL target. The volume involved would be the equivalent of closing down a significant part of the Basin’s Riverland and Sunraysia irrigation districts.

“We are worried about the viability of the dairy industry along the length of the Southern Connected Basin if any water recovery targets on-farm works before fully considering off-farm mechanisms. There needs to be a holistic approach taken and it need to be led by all the State Ministers.”

“Through its commitment to adopt a standardised method of reporting compliance, with the aim of publishing a standardised set of compliance data, Murray-Darling Basin state ministers demonstrated that they can act collectively in the best interests of the Basin.

“We need our political leaders to come back to the table in good faith with a vision to act on behalf of the whole community.”

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

There would be few in the Australian dairy industry who have not been impacted by the work of Allan Burgess.

Whole of industry collaboration was the key theme of the annual Australian Dairy Industry Council (ADIC) Industry Leaders Breakfast today.

More than 200 of Australia’s leading dairy representatives from across the value chain, gathered in Melbourne this morning to start the conversation about a whole of industry vision and plan, and the need to provoke change.

They heard from leaders of the dairy, red meat and seafood industries on the challenges and rewards of whole of industry collaboration.

David Inall, the Australian Dairy Farmers (ADF) Chief Executive Officer, said the Breakfast provided the chance for industry to discuss how they can work together to seize emerging opportunities in global markets and food trends.

“The past couple of years has been a difficult time for the industry, but green shoots are appearing in the form of opportunities and collaborations,” Mr Inall said.

He said dairy industry efforts can be better coordinated to encourage innovation, efficiency and political advocacy.

“Through the ADIC, we have collaboration through the value chain, and now need to focus on the future and better outcomes by creating an all of industry plan and vision.

“We are now starting on a process of creating this industry vision and plan, building on existing efforts such as the strategic plans from ADF and Dairy Australia, as well as the Australian Dairy Industry Sustainability Framework.

“We need all of industry pulling together in the same direction, so we can take on our competitors.

“I believe we need a more visible and united presence in Canberra. As we move towards the next federal election, 2018 will be an important year for dairy politically, as well as operationally.”

Newly elected ADIC Chair, Terry Richardson, said: “Let’s start the conversation.”

“Collaboration is key; we have to get better at forming strategic alliances. We need to work out, together, how we can make the Australian dairy industry more successful, and not just in our own patches.

“And let’s be unapologetic about focusing on outcomes, because we need to compete with the best in the world and we have some work to do – so let’s start today.”

Media Contact:

Gabrielle Sheehan, Acting Media Officer

M: 0409 945 001

E: gabrielle@curriecommunications.com.au

The Australian Dairy Industry Council (ADIC) has welcomed news this week that the Australian Government has successfully negotiated a new trade deal with Peru.

The deal will see Australia receive improved market access for dairy in the form of an export basket quota of 7,000 tonnes of dairy product in the first year of implementation, rising by 300 tonnes per annum and peaking at 10,000 tonnes in the 10th year.

ADIC Chair, Terry Richardson, said the new agreement was a positive step forward for the industry and will provide greater opportunities for Australia to expand its export capacity.

“This is a good outcome for Australian dairy farmers and the industry in general. Historically, Peru has been a sensitive market for dairy imports, so this is a positive achievement,” Mr Richardson said.

“The Australian dairy industry is recognised worldwide for producing sustainable, premium quality products and we’re excited that this new deal will provide access to a growing market.”

Mr Richardson noted that the initial Country Specific Quota (CSQ) volume exceeds recent trading volumes, which have varied considerably over the past two decades from a high of 5,931 tonnes of dairy products exported in 2002 to a low of 92 tonnes in 2014.

All Australian dairy exports to the emerging South American market will be subject to a CSQ, in line with similar agreements Peru has in place with the EU and United States.

The new agreement will provide a greater degree of certainty for Australian exporters and ensures they will have improved access to a highly competitive market place, as well as placing Australia on a more even playing field with international competitors.

“International trade is essential for the growth of our industry. Increased market access promotes stronger demand for Australian products, which helps underpin local farmgate milk returns and provides a framework for profitable industry growth,” Mr Richardson said.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Today, the Australian Dairy Industry Council (ADIC) proudly endorsed the International Dairy Fund (IDF) Dairy Declaration of Rotterdam, a commitment by the global dairy industry to support the United Nations Sustainable Development Goals.

ADIC Chair, Terry Richardson, said the endorsement of the Declaration reflects our strong support for sustainable development, as evidenced by the Australian dairy industry’s Sustainability Framework.

“The Australian dairy industry is committed to finding innovative solutions and building capacity to develop the sustainable food systems and resilient agricultural practices envisaged by the goals,” said Mr Richardson

“Our industry has a key role to play in protecting the environment, addressing climate change as well as providing nutritious food for consumers and a source of income for millions of people worldwide.”

Dairy Australia Managing Director, Ian Halliday, welcomed the ADIC and wider industry commitment to the Declaration.

“The Declaration provides a positive set of goals for the industry to work towards and complements our existing sustainability framework,” he said.

The ADIC looks forward to working with all IDF and FAO members to implement the Declaration and contribute to the realisation of the Sustainable Development Goals.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

On 29 June, Unilever, one of the world’s largest companies, announced its certification of the sustainability credentials of Australia’s milk production for another 12 months.

Australian Dairy Industry Council’s Interim Chair, Terry Richardson, said endorsement from a company like Unilever is a great achievement and reflects the focus that Australian dairy farmers have for sustainable farming practices.

“The Australian dairy industry is committed to the implementation of actions to support ongoing targets and measures as part of the Australia Dairy Industry Sustainability Framework,” said Mr Richardson

“We want to ensure that the Australian dairy industry is recognised as sustainable in the eyes of customers around the world so that our farmers and processors can be assured that the industry has a long-lasting future.”

In 2013 the Australian dairy industry was the first in the world to be recognised as meeting Unilever’s Sustainable Agriculture Code (SAC) as a 100 per cent sustainable supplier of milk.

The company’s SAC measures 11 key indicators including soil health and fertility, soil loss, nutrients, pest management, biodiversity, energy, water, social and human capital, local economy and animal welfare. Unilever aims to source 100 per cent of their agricultural raw materials sustainably by 2020.

The Unilever certification was underpinned by the dairy industry’s Sustainability Framework and reporting progress against similar targets.

Dairy Australia Managing Director, Ian Halliday, said Dairy Australia supported Australian processors in securing the Unilever certification for the entire industry’s milk supply for another year.

“The benefits of industry collaboration were crucial in gaining the Unilever endorsement and illustrated the value of industry groups working together to achieve a common goal,” said Mr Halliday.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Today, the Australian Dairy Industry Council (ADIC) launched the first Dairy Industry Code of Practice for standard form contractual arrangements.

Through consultation with state member organisations, farmers and processors, the ADIC has developed the voluntary Code to help ensure greater transparency and fairness in milk supply and pricing.

It is anticipated most of the milk produced in Australia will be covered by the Code.

ADIC Interim Chair, Terry Richardson said it is important that contracts are fair, simple, realistic and easily understood by both parties.

“The Code will address a range of contractual issues which farmer organisations have been trying to address and rectify for a significant amount of time.

“Both farmers and processors sat down to work together cooperatively and in good faith to establish this code”, said Mr Richardson

ADIC Deputy Chair, Grant Crothers said, “we believe the Code will improve contracting arrangements between farmers and processors; and offer greater transparency through earlier and clearer pricing signals for farmers, which means less risk for farmers and more balance along the supply chain.”

The Code will include provisions that:

• there will be no price changes made retrospectively;
• ensure all farmers receive payment entitlement that accrued over the term of a contract orsupply agreement (including any ‘loyalty payments’); and
• If a farmer produces more milk than required or contracted to their primary processor and the processor does not want to purchase the additional milk, then the contract between the farmer and processor must allow the dairy farmer to supply the additional milk to other processors.

The Code was initially drafted on 27th September 2016 at a workshop attended by processors, farmers, Mick Keogh from the ACCC and representatives from the Small Business and Family Enterprise Ombudsman.

It aims to address issues with dairy contracts in a way that works for both farmers and processors and will apply to standard form contracts between processors and farmers, but does not preclude a farmer negotiating an individual contract with a processor.